BKT reports 47% increase in profits IN Q1.

Balkrishna Industries Ltd. (BKT) has reported increased sales and volumes and significantly higher net income in the first quarter of its 2017 financial year. The Indian manufacturer sold 41,456 tonnes of tyres during the three months to 30 June 2016, an amount representing year-on-year growth of 11 per cent. Net sales were up 7.0 per cent to Rs 9.1 billion (£102.2 million). EBITDA jumped 136 per cent to Rs 2.6 billion (£29.2 million), with the margin growing from 12.8 per cent in the corresponding quarter of the previous year to 28.0 per cent in the reporting period. Net profit rose 46.6 per cent to Rs 1.5 billion (£16.7 million).

The agricultural segment accounted for 64 per cent of BKT’s sales during the first quarter, with OTR tyres representing 32 per cent and other products, such as ATV and lawn tyres, a further four per cent. 72 per cent of sales were made in the replacement market, with 24 per cent going to OEMs and four per cent to other customers.

The tyre maker aims to sell 160,000 to 170,000 tonnes of tyres during the 2017 financial year, some 7.9 to 14.7 per cent more than in the previous year.